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Transportation ForecastingFinally, Forward Planning for Logistics

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Simply Having TMS and WMS is No Longer Sufficient

Logistics Challenges

Customer Service

Seasonal,Promotional

FinancialPressures

Internal Drivers External Amplifiers

TightCapacity

ShrinkingLead Times

Volatility

Lack of Visibility

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No Visibility Beyond Existing Orders

Every Day Another Batch of Orders To Be Shipped

Trapped in a constant state of scrambling

Last to know about promotions Prone to unscheduled events,

rush charges, overtime, etc. Reliving the same emergencies

over and over

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Logistics Operations Identify capacity constraints

before experiencing them Proactively secure capacity

with preferred carriers Avoid spot market

Schedule warehouse workload Enable cross-dock efficiencies Job satisfaction & productivity

Less scrambling Improve intermodal usage

Carrier Collaboration Share forecasts with carriers Improve strategic partnerships Become shipper of choice Negotiate beneficial rates Help improve return on assets

Fundamental Shift from Reacting to Planning

Customer Service Best service via preferred carriers Improved score cards Become the preferred vendor

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Enable the Whole Company to Operate Against the Same Plan

Aligned with S&OP

Synchronized with the demand planning forecast and the manufacturing and deployment strategy

Visibility to proactively respond to : Promotional surges Seasonal patterns Volume shifts from changes in your network

Always current – updated daily based on the latest information

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Thank you

Mondelēz International N.A. Journey to Transportation Planning & Forecasting …

• The NEW Global Snacking Powerhouse Company• $35 Billion Total Sales

• $7 Billion of this in North America

• Diverse Power Brands• #1 Biscuit and Candy• #2 Gum

• Clear Vision & Values• Transformational Leadership• Safety, Service, Cost in the ISC• Supply Chain Reinvention; massive investment for future• Top Tier Financial Performance; we are overtaking our competition already!• A Great Place to Work• Awesome Values..

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Mondelēz International

Mondelēz International:What is Transportation Planning & Forecasting…

Capacity Requirements Carrier forecast Facility forecast (inbound vs. outbound) CPU

Capacity Management Capacity shortage vs. current routing guides Capacity surge vs. previous 4 weeks average & F/C – Defining work processes

Forecast Accuracy TF vs. actual TF vs. Demand (ADF) Compliance to Replenishment (APS)

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Three Key Capabilities

Mondelēz International:

An engine to predict future demand related to transportation planning beyond orders.

Close the gap between sophisticated supply chain and reactive transportation planning by making more information available to users.

Allows communication between traditional logistic information silos (Promotions, DP/Forecast, and TMS).

Application using open orders, shipments, and DP forecasts to generate transportation forecasts at the lane level with shipping modes and temperature channels.

TERRA Transportation Forecast:

TERRA Technology utilizes the aforementioned forecast and converts to truckload requirements.

Truckload forecast is compared with OTM Routing Guides

What are the Needs & Enablers to Developing the process x-functionally

Mondelēz International: Benefits Desired

Capabilities

Capacity Requirements

Capacity Management

Forecast Accuracy

Cost Prediction

Promotion/Category Volume

Planning

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Improve Service

Improve Tender Acceptance

Improve RG Compliance

Simplify & Restore Reliability

Proactive vs. Reactive Focus

Cost Containment

Benefits

Capabilities Enable the Benefits

Transportation Forecasting (TF) OverviewBasic System Flow

Mondelez Transportation Systems Flow

IBP (S&OP) Process

Sales & Demand Forecast

Product Supply

LogisticsPlanning & Execution

Transportation Forecasting is dependent on Demand and Supply…

…therefore, must be integrated

Logistics PlanningFulfillment/DeployDistribution Ops.Transportation

TF Analytics

TF Analytics is dynamic reporting information organized by modules

TF Analytics contains four main modules:

Forecasts shows, by day, the current and historical views of the daily forecast

Accuracy used to compare DP/RP and TF accuracy

Forecast Evolution similar to Forecasts, but shows multiple days in one view

Category Volume Breakdown shows the forecast volume for each category

TF Analytics – Forecasts

Forecasts tab allows you to view the TF forecast and Orders

Selection of Truck, Pallet, Weight, Case, Volume, or Cost from the Unit options

Selection of Forecasts, or Intermodal Report from the Chart options

TF Analytics - Accuracy

Compare and analyze the historical performance of the DP and TF forecasts Truck or Cost from the Unit options Forecasts, MAPE or Bias from the Chart options Loc-Zone or Loc-Cust-Mode-Temp-Carrier from the Agg Level options

TF Analytics – Forecast Evolution

Forecast Evolution tab allows you to analyze forecast changes for a given date/time period over time

TF Analytics – Category Volume Breakdown

The Category Volume Breakdown tab provides the forecast volume for each category. The breakdown uses a splitting factor based on current DP

Routing Guide Exception: Weekly Capacity Shortages

Forecast/Demand results information is reconciled weekly with Routing Guide for Capacity, KPI Mgt., Carrier Communication etc…

Forecast & Capacity Planning Actions

Information supports: Product Supply validate volume S&OP and IBP

Customer Service & Sales validation of orders

Carrier Communication & Collaboration

Demand Planning field reconciliation

Transportation Capacity Management & Execution

Deployment & Fulfillment Practices

Future Procurement initiatives

Benchmarking within the industry

Cost Containment

Simplification of Process

Results from TERRA Transportation Forecast Planning

TF Planning continues to support and contribute to moving

to BIC by supply information x-functionally is a systematic process

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Mondelēz International NA Transportation has seen significant improvement in Service & Cost Containment over the past 3 years due to TTF and Planning

KPI 2012 YOY 2013 YOY 2014 YOY 2015 YTD

TF Accuracy 3.1% 3.7% 1.1% 0.4%

Routing Guide Compliance

1.0% 4.7% 3.4% 1.6%

OTD 6.1% 12.1% 2.2% 0.4%

RDD 8.0% 10.7% 0.7% 1.7%

EDI Compliance 1.0% 1.0% 4.0% 0.4%

THANK YOU, AND ENJOY YOUR JOURNEY

Joe Tuturice

Mondelēz International

North America Transportation

610-751-1650

joseph.tuturice@mdlz.com